Rebuilding trust at Davos to find lasting global solutions
TFor South Africa and Africa ... Davos is a strategic platform to publicise Africa’s growth plans and gain global support and investment
rust seems to be a very scarce commodity in global geopolitics and geoeconomics these days. From a geopolitics perspective, the world is now facing two devastating wars — the Russia-Ukraine and the IsraelHamas conflicts — while regional clashes rage elsewhere in the world, such as parts of Africa, Asia and Latin America.
From a geoeconomics standpoint, slowing global growth (2.9% expected this year, compared with 3.8% last year), rising global debt, high interest rates and inflation loom large. Trust is crucial to find lasting solutions to all these problems. That is why the World Economic Forum (WEF) has chosen the theme “Rebuilding Trust” for its 54th annual meeting, due to take place this week (January 1519) at the ski resort of Davos.
WEF chair Klaus Schwab argues that “we face a fractured world and growing societal divides, leading to pervasive uncertainty and pessimism”. About 2,800 leaders from business, government and civil society will attend this year’s Davos meeting. Most Asian and Latin American countries will be represented, while Africa will have only seven heads of state and governments in attendance.
Africa’s modest showing may reflect the increasingly inward-looking approach of African leaders, as well as the growing number of conflicts across the continent. Africa needs to get its house in order to avoid being left behind in an increasingly digital and competitive world where each country puts its interests first.
Why does the WEF matter, and why should we care? The WEF has over the years, since its formation in 1971, become a strategic space for global strategic conversations that are at the forefront of current and future global and regional events.
Leaders from both the developed and the developing world, as well as different sectors of the economy and society, gather as theoretical equals to build relationships that can be leveraged to solve some of the world’s most pressing problems. It is also one of the few events where the crucial players in global, regional and national affairs can gather to meet, network and discuss important matters, as well as lay the groundwork for making deals.
For South Africa and Africa — which, like other countries and regions, are still grappling with economic growth and developmental challenges — Davos is a strategic platform to publicise Africa’s growth plans and gain global support and investment.
However, going to Davos without a compelling story and policy framework attractive to investors can be a huge waste of time and resources. In today’s world of transparency, artificial intelligence and globalisation, economic actors have access to information and geopolitical and geoeconomic analyses to shape and inform their investment decisions.
There is no place to hide or lie. South Africa’s focus should therefore be on fixing the domestic investment climate to make it attractive to capital providers. The country has done well to build consensus on the three main constraints on the economy’s growth, which are energy, crime and corruption, as well as freight and logistics.
Public-private partnerships already formed need to focus on delivering results that enhance South Africa’s global competitiveness and win the hearts and minds of global and domestic investors. The time for mere talk is over.
What matters most is whether the lights are on, the trains arrive on time, and the streets are safe for all. It is also crucial that no bribes need to be paid to access public services or get regulatory approvals.
South Africa has a golden opportunity to unlock a step change on all these crucial issues. If it does this successfully, the country will become a magnet for both foreign and domestic investment.
However, achieving this state of affairs will require all leaders to put the interests of the economy and society above their individual and/or sectoral interests.
It will also require a return to a rules-based form of governance with standards of meritocracy, integrity and professionalism. There should be no room for arbitrary decisions not based on the rule of law, good governance protocols, and transparency and accountability.
To fix the problems facing South Africa will require paradigm shifts in leadership and management, not money. Our problems are selfcreated, and self-correction is required to fix them. They’re fixable, so let’s fix them. We need to make the right choices on how we lead, govern and manage our state-owned enterprises, public institutions and private sector companies — some of which have themselves not been immune to corruption and malfeasance.
Team South Africa needs to be very honest and transparent about the challenges we face and how we intend to solve them if we are to build trust and
confidence at Davos. Spin-doctoring and cheap PR will not fool the world. There is a need for intellectual honesty and openness to innovations, especially those from other emerging markets that have successfully dealt with similar challenges.
What, then, do we need to do to “rebuild trust” and create a better world for all? At the core of the trust-building project is the need for honesty, openness, collaboration and co-operation, and a tangible sense of common purpose to build strong, resilient, inclusive and sustainable economies and societies.
We need to boldly tackle poverty, inequality, injustice and unemployment at all levels and sectors of our economies and communities. The trust deficit between developed and developing countries needs to be addressed. And so must the trust deficit between rich and poor in developed and developing countries.
Above all, we need a unifying and enlightened brand of leadership at global, regional and national levels. The current depressed state of global and regional geopolitics is a reflection of the poor leadership in global and regional affairs. A reset in global leadership styles and philosophies is urgently needed for us to make the world a better place for all.